Tax Law Certainty Essential for a Healthy Investment Climate

On 28 October 2025, an article highlighted that tax‑law certainty is essential for a healthy investment climate in Indonesia. Without clear rules, investors may hesitate to commit capital due to regulatory uncertainty. Certain tax enforcement is expected to stabilise the investment environment.

Investors have repeatedly encountered tax regulations that allow multiple interpretations, leading to prolonged disputes. The 2024 DJP financial report recorded 20,319 tax cases with a total value of IDR 103.82 trillion. This situation erodes confidence in the tax authority and raises enforcement costs and duration.

Proposed reforms—including clear and integrated regulations, digitalised enforcement, artificial‑intelligence risk analysis, intensive fiscal‑staff training, and alternative dispute resolution (ADR)—aim to improve legal certainty. Their implementation could enhance the tax authority’s image, attract new investment, and boost state revenue. Success depends on strong government commitment and active collaboration with the business sector.